The fabrication and basic magnetic characteristics of a closed‐flux memory element will be described. The element is made entirely by vacuum deposition and photoetching techniques. The element, which uses oxidized silicon as a substrate, consists of two 0.5‐&mgr; cobalt‐Permalloy films deposited so that they overlap the bit line and provide flux closure in the easy direction. Partial flux closure in the hard direction is obtained by using a 1‐&mgr; ``keeper'' film. Tabs are included on the memory films to help reduce the reluctance through the SiO layer, which insulates the word lines from the bit lines. The problems involved in this development include: obtaining satisfactory insulation from the silicon, raising theHcof the first magnetic film by a suitable undercoat, keeping the dispersion of the second magnetic layer and keeper film low by use of a smoothing coat, keeping the crystal size of the word and bit lines small during subsequent processing by using 95:5 Al&sngbnd;Cu alloy, and interlayer adherence, particularly the keeper layer.